MW: Copper falls for third day as economic worries continue
Copper futures fell Wednesday in New York for a third session, continuing their slide from the highest level in six months, as gloomy earnings reports from Morgan Stanley and Boeing reinforced economic worries.
Limiting copper's losses, China reported that its imports of refined copper hit a record high in March. In other metals, gold rose as economic fears boosted safe-haven buying. Silver and platinum also gained.
Copper for May delivery lost 4.45 cents, or 2.1%, to $2.0425 a pound in early North American electronic trading. June gold gained $4.30, or 0.5%, to $887.18 an ounce.
Copper has lost nearly 7% this week. The decline came after it ended last Friday's trading at $2.194, the highest level since mid-October and up more than 50% from February's low below $1.40.
Economic fears and profit-taking were pushing down copper prices, said George Gero, a precious-metals trader for RBC Capital Markets.
But some analysts said copper prices could rebound soon as demand from China is likely to remain robust.
China's refined copper imports rose to 296,843 tons in March, up 138% from a year ago, boosted by continued government stockpiling. Analysts expect April imports to continue rising.
"There is not much in terms of metals news that warrants the declines we are seeing," wrote Edward Meir, an analyst at MF Global.
China's State Reserves Bureau is believed to have bought 300,000 tons of copper since March.
Gloomy earnings
Setting the tone for Wednesday's stocks and commodities trading, Morgan Stanley reported before the opening of stock markets that its first quarter results swung to a net loss to common shareholders of $190 million, or 57 cents a share.
Meanwhile, Boeing Co. reported sharply lower first-quarter earnings and cut its forecast for the remainder of the year, citing global economic pressures on its commercial aviation business. See full story.
Stocks opened lower on Wall Street, while crude-oil futures fell about 1%.
Among other metals, silver for May delivery rose 6.5 cents, or 0.5%, to $12.125 an ounce. June palladium gained $10.35, or 4.7%, to $232.50 an ounce. July platinum added $18.10, or 0.6%, to $1,175.70 an ounce.
Elsewhere, holdings in SPDR Gold Trust , the biggest gold exchange-traded fund, stood at 1,105.98 tons Tuesday, unchanged from a day earlier, according to the latest data from the fund.
